California Assembly Majority Leader Calls for Easier Plant Tagging and Stronger Enforcement to Help Small Cannabis Cultivators

Licensed cannabis cultivators and manufacturers in rural California continue to face steep economic challenges. High operating costs, limited local tax bases, inconsistent county participation in the legal market, and competition from unlicensed operators have created a difficult landscape for small businesses trying to stay compliant. The question of how state policy can better support these operators is expected to be a central issue heading into the next legislative session.

Assembly Majority Leader Cecilia Aguiar-Curry says the first step is ensuring that the legal market functions as intended. She notes that rural operators often feel the impact of weak enforcement more acutely than businesses in larger markets. According to Aguiar-Curry, the state must maintain a regulatory structure that protects compliant operators while reducing unnecessary burdens.

“Enforcement has to be our first line of defense,” she explained in a written interview. “Everyone who is in this market should be playing by the same rules.”

Aguiar-Curry, whose 4th Assembly District spans much of interior Northern California, points to years of work on hemp policy as an example of how the state can balance consumer safety with the needs of licensed cannabis businesses. She notes that AB 8, a 2023 law establishing a unified regulatory framework for hemp and cannabis, is now taking shape, though full integration will not occur until 2028. The goal, she says, is a system that reduces unfair competition from illicit hemp products while easing pressure on licensed operators.

“We need to make sure we are enforcing the laws already on the books so there is a level playing field for everyone,” she writes.

Policy Adjustments for Rural Viability

When asked which specific policy changes could improve economic viability for rural cultivators and manufacturers, Aguiar-Curry acknowledges the complexity of the issue. She says the state has already taken steps to simplify compliance for small cultivators, including adjustments to METRC’s plant-tagging rules. 

“This is always a tough question,” she says. “We have tried to help make regulations a little easier for our small cultivators to tag their plants.”

She also highlights the upcoming hemp integration framework, which will allow CBD manufacturers to use hemp-derived CBD instead of cannabis-derived CBD beginning in 2028.

Still, she says, more work is needed. Rural operators often face higher transportation costs, limited access to local testing facilities, and fewer opportunities to participate in regional supply chains. Aguiar-Curry says lawmakers will continue evaluating ways to reduce regulatory friction without compromising consumer safety.

Tax Structure and Illicit Competition

Many operators argue that high taxes make illicit cannabis more attractive to consumers, especially in rural areas where unlicensed activity remains widespread and licensed dispensaries are few and far between. Aguiar-Curry says she hears frequently from business owners who follow the rules but struggle to compete with illegal operators who do not pay taxes or meet regulatory requirements.

“One of the hardest things I hear in meetings is from business owners who are doing everything they are supposed to do, only to look across the street and see an illicit operator undercutting them,” she explains.

She says tax reform is part of the conversation, but not a simple one. The state must weigh revenue needs, local impacts, and the long-term stability of the legal market. According to the majority leader, lawmakers need to keep asking what is working and what is not, and continue adjusting the system as the market evolves.

Counties That Still Ban Licensed Cultivation

Jurisdictions that continue to prohibit regulated cannabis businesses only drive such activity underground. The California Department of Cannabis Control recently reported that 97% of cannabis seized in unincorporated areas came from counties that still prohibit licensed cultivation. Aguiar-Curry says the legislature must help local officials and residents understand the benefits of regulated businesses, noting that education and outreach are key to encouraging more counties to join the regulated economy.

“I think a lot of people might have concerns or misconceptions about cannabis businesses and what those might mean for their communities,” she writes. “Good information can really go a long way to clearing those up.”

Legislative Priorities for 2025

Aguiar-Curry says supporting rural operators and the broader cannabis industry will remain a priority for Democratic lawmakers in the next legislative session. She frames the issue as both an economic and public safety concern.

“Supporting our licensed cannabis businesses is important, not just for protecting the industry, but for keeping our communities safe,” she says.

As California weighs how to ease compliance costs and strengthen enforcement, rural operators will be watching for changes that help licensed businesses compete. Those pressures will be part of the conversation at IgniteIt’s Market Spotlight: California 2026 in Los Angeles on October 7, where operators and industry leaders will examine the state’s regulatory outlook and the economics of its cannabis supply chain. Explore the agenda and register here.